The condensed balance sheet and profit and loss ratios of the partnership of Bean, Dean, and Jean are as follows: Cash P 1,125,000 Liabilities P 2,625,000 Rec. from Bean 375,000 Payable to Jean 500,000 Other assets 10,250,000 Bean, capital (40%) 3,750,000 Dean, capital (30%) 2,500,000 Jean, capital (30%) 2,375,000 Partners agree to liquidate and all non-cash assets were sold for P7,500,000. How much of the available cash will go to Bean?
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
The condensed balance sheet and
and Jean are as follows:
Cash P 1,125,000 Liabilities P 2,625,000
Rec. from Bean 375,000 Payable to Jean 500,000
Other assets 10,250,000 Bean, capital (40%) 3,750,000
Dean, capital (30%) 2,500,000
Jean, capital (30%) 2,375,000
Partners agree to liquidate and all non-cash assets were sold for P7,500,000. How much of the available cash will go to Bean?
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